Endeavour Group has made 14-day payment terms for its small suppliers permanent, after it introduced the measure in March 2020 as a pandemic support initiative.
Small suppliers will be classed as those that receive payments from Endeavour Group of less than $1m, with less than $10m in annual turnover.
Endeavour Group CEO and Managing Director Steve Donohue said recent years have presented a range of challenges for small suppliers across the industry and the impacts of the pandemic are still being felt by many.
“In March 2022 we announced that we would extend 14-day payment terms until June 2023, but in response to supplier feedback over the last year, we are pleased to have made the decision to keep them in place for good,” Donohue said.
“While lockdowns seem like a distant memory now, the flow-on effects for our small suppliers cannot be underestimated.
“In order to have a vibrant drinks industry, it is important these businesses are given every opportunity to succeed. And our ability to provide customers with the most extensive range of drinks – to suit all tastes and preferences – depends on them.
“That’s why we took on 900 new small suppliers during the pandemic, giving their brands a national platform, and introduced more favourable payment terms to ease some of the financial burden they faced as a result of losing their previous avenues to market.
“The extension of this initiative recognises that although lockdowns have been lifted and restrictions removed, the challenges for many businesses have continued with supply chain challenges, high inflation and rising cost of doing business.
“We are committed to working in close partnership with our suppliers to get their products to more people right around Australia.”
Ryan Davidson, CEO of Little Bang Brewing in South Australia welcomed the news, saying: “COVID-19 was such a scary and unpredictable time in so many ways. Knowing that a big player like Endeavour had our back was a great source of comfort to us.”